4 Advantages of Using Your Credit Card to Pay for Business Expenses

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By Robert Bast

Topics: Credit

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You have to spend money to make money, or so the old saying goes. Most business owners know this to be true, especially when they’re faced with the accounts payable ledger.

What are examples of typical business expenses?

Business expenses depend on the size of your business, but you’ll likely need to pay suppliers and vendors. You may need to pay rent for your office space, and you probably have a business insurance policy. If you have employees, payroll is probably one of your largest expenses.

For many businesses, cash flow is often tight. If you’re waiting for your clients to pay, you may wonder how you can manage your obligations. One great option is to use your credit card. This method has several advantages.

1. Meet Your Financial Obligations

One of the most common scenarios for business owners to encounter is tight cash flow. You have many outstanding invoices, but no one has paid yet. Your bills, however, are due tomorrow, or you need to finish payroll by end of week.

By using a credit card, you can easily cover these expenses. You can use the card to purchase more inventory if supplies are low, or you can pay an outstanding vendor invoice. You can even use it to fund your payroll until the cash starts flowing in again.

You may think that credit card payments are not widely accepted for B2B payments. After all, this seems to be the reality in the industry—not every supplier will accept a credit card payment. However, with the right payables platform, you can use your existing credit card to fund any and all relevant business purchases, regardless of supplier acceptance.

2. Avoid Interest Fees on Expenses

Most credit cards have a grace period, during which they charge no interest. Check the terms of your card to see if you have an interest-free grace period and how long it is.

If your card has one, it offers you another advantage when it comes to paying for business expenses. Instead of using a line of credit, you can use the credit card and avoid interest and fees. So long as you pay back the amount before the end of the grace period, you won’t pay any interest.

If you know cash will be coming in soon, this can be a great way to weather the gaps in your business income without incurring any additional charges.

3. It’s Flexible Financing

If you’re just starting out or need financing fast, a credit card is likely a better way to finance your business.

Some business owners don’t qualify for bank loans, while others may only need small amounts. A credit card can give you the capital you need. In addition, as you pay back the balance, the funds become available to you again. This is different from a locked loan from the bank. As you repay those funds, you may not get to use them again.

The credit card can help you manage cash flow more easily. You may not need a traditional bank loan if you just need to fill the gap between payday and the end of the month.

4. Some Cards Earn You Bonuses

Much like consumer credit cards come with perks such as points programs, so do some business credit cards. You can pay for your business expenses and earn points at the same time.

A travel rewards card is a good example. If you travel frequently for business, you can use the card to fund your business expenses and earn points towards free or discounted travel.

Using a credit card to help pay for business expenses can be a smart move for many business owners. The next time you need to pay the bills, think about what your credit card can do for you.


The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.

Robert Bast

Robert is a proven strategic business leader with 18 years of experience in the financial and technology services industry. During his career, Robert has worked at several major banks and credit card networks and has helped to launch business strategies and products both in Canada and around the world. He has consulted with hundreds of small businesses, large market organizations, and enterprise companies on topics ranging from simple payment optimization strategies to account reconciliation and payment process re-engineering plans. As Chief Revenue Officer and Co-Founder of WayPay, he is responsible for the development of key partner strategies, go-to-market and growth plans, and a positive customer sales and acquisition experience.